thin trading and day traders, page-2

Ferraripower,

If the company does in fact have 200-300Mt of Iron Ore then there is no comparison to the tech bubble.

The bubble that can burst for FDL is if the iron ore price does a U-turn but noby, inclusing BHP and Rio can't see a softening before 2010.

FDL shareholders should be most interested in FMG's campaign to get access to BHP's and Rio's train lines.

A Rio owned line runs close by the enormous FMG owned Solomon resource (where FDL ground is also located). FMG's planned construction of a rail spur to the actual resource and which hopefully will connect to Rio's line, would give FDL access to market for its own ore. However, I think FMG will do a deal with FDL well before then.

In any case, there will be a line running to the site through FMG and for a cost, FDL is liely to have access. It would be hugely hypocritical of FMG to not allow access given its own public statements in its battle with Rio and BHP over access to their lines.

Where's the weakness in the FDL story? Well, given the resource hasn't been drilled yet, that's a risk but Iron Ore deposits tend to be straight up and down if they outcrop and thus the consulting geologist must have reasonable grounds for his assessment of its size.

We have a healthy pull back and pause but this story isn't going to go away. Its has compelling upside.